The Indianapolis journal., 1887-05-18

ment was made. got word that the Amster-
dam people would sell out their interest in the
Denver Pacific, but had read Irviugs knicker-
booker History of New York and was afraid
that they would spend day in smoking before
they made up their minds to sell; but finally
mustered up courage to go to Amsterdam. /
reached there at 10 A. NJ. and was called on by
the parties at IL A. NJ. and bought and paid for
So, 900. 900 of bonds at II. presume paid about
IA for them, il that is the price for which sold
them to Mr. Sage. had interest in the St.
Joseph 81 Western. We found that the roads
east from Omaha were forcing the Union Pacific
to prorate and we found necessary to get an
outlet by the Hannibal & st. 10, the Wabash
and those southern roads, SO as to prevent this.
That's what made these acquisitions desirable
the Union Pacific"
Mr. Gould here presented statements of his
dealings in the securities of the Kansas Pacific
system and was examined at length with refer
ence them by Commissioner Anderson. II
had no transactions in the St. Joseph & Denver
prior to January. 1873. The total amount of the
transactions appears to be little less than
million and half, purchased for little more
than 5000, ,0O0.n Mr. Gould said: I'm addition to
the stocks held at the time of consolidation,
owned per cent. consolidated bonds of the Kan
sas Pacific, to the amount of $2.661, 900 and
Union Pacific collateral SKIES in the sum of
ST. 900, ,000 The s, 8I9 shares of st. 10 &5 Denver
were trimmings to the bonds and went with
them. l sold stock and bonds to Sage Dillon
and Ames at the same price at which bought
them. / sold few shares in the market They
had become eiIt-edeed and | probably parted
with them to pay hotel bills"
This statement was accompanied by a smile
"Tne St. Joseph bridge bonds of over $780, 600
were all purchased in transaction at 75
l cold $3.50. 900 to Russell Sage and 800 900 to
Sidney Dillon at the same price All of this
stock was kept until the transaction with the
Kansas Pacific. I think took up the ST. Jo-
seph bridge receivers certificates from the diff
ferent parties with whom they were accepted by
the receiver. l built the Hastings & Grand
Island road, and through that became the owner
of 1920, $50 of its stock The Union Pacific ad-
vanced the money to build the road, and drew
on me. The stock held represented the actual
cost of construction. The total issue of the
bonds of the road was, think, 1915, 600, and the
stock was 4,500 shares. made large sale of
Union Pacific stock to Messrs. Cammack &5
Keene in 1879. On the 1st of January I owned
II 900 shares of stock. On the Oath of January,
1880, was clear on the books of the Union Pa
cifc railroad. There was law in Massachu-
setts that allowed anybody having any claim
against the railroad to attach the stock, and
put it out of my name because a claim had been
trumped up and my stock was be attached
and destroyed as a collateral It was retrans-
ferred to after the consolidation. / owned
$4,000 shares of the Union Pacific stock on Jan.
a. 1880
Twelve thousand shares were in Dlons
hands," continued Mr.. Gould. land / think
Morosni had the balance. I had $1,000 shares
of Union Pacific and 72, 342 shares resulting
from the conversion of the Kansas Pacific and
Denver Pacific securities. On the Supreme
Courts decision on the Thurman bill made up
my mind it would be better to have several
thousand stockholders. It was for my interest
to put the stock out, as the consolidation had ad
vanced it's value 80 points. General Dodge and
Solon Humphreys were peculiarly fitted for ex-
amining into the matter of the consolidation and
reporting on the proper basis for the consolida-
ton. While they were SO engaged my interests
ton. purchased Missouri Pacific, Nov. 13 1879
in order to protect the Kansas Pacific. I can't
say that Dodge and Humphreys's report took
into consideration all the elements that should
have been considered. At the time their report
received 1 was against the consolidation. I
had talk in reference to the matter with Sage,
Dillon, Dexter Ames or others, that Of
fered them my check for 81 900 900 if they would
not ask to consent to this consolidation.
They kept me in my Office until I signed paper
agreeing to carry the consolidation through 1
presume this paper is now in Boston. I signed
it after [ resigned director / don't think
Judge Dillon had any particular communication
had then ceased to be power in Union Pacific.
| was not surprised at being made director
in the new company, but this was not
determined upon at the time 1 signed the
paper The consolidation assured fact
on Jan. Is, $780, for signed the paper referred
to on that day, and held a controlling interest
in Kansas Pacific. It was desirable to effect the
onsoidation to put in the Denver Pacific stock,
of which I held 81, ,000 900 worth. which 1 bought
at 10 cents. AS trustee, held 1886 shares.
told Holmes if he could get an order of court
releasing it, would put it in at more than it n
was worth-that is, at 100000. I remember
this particularly, as I sold 81 900 worth at
10 and shortly after bought it back at par The
trustees would get nothing if this stock had not
been released, for the bonds would have been
foreclosed and the stock could not have gone
into the consolidation. What did in the matter
was 1.-THE best possible thing for the trust. and
/ am willing to stand by my action. The parties
having charge of the consolidation agreed to give
$500 900 for this trust stock, and but for this
rangement nothing could have been done toward
paying off the mortgage. Whatever the consoli-
dated company put its seal to had immediate
value, and. though it was not obliged to accept
this Denver Pacific stock, we arranged that it
should be, and we thus did our duty by our
trust"
In answer to Commissioner Anderson's search
ing questions in regard to the handling of Den
yer Pacific stock in trust, Mr. Gould replied Wig
orousy xgesticulating violently. He seemed
greatly incensed at the imputation of a disnonor-
able deal between Sage and himself in reference
to the trust